How Artificial Intelligence Can Change the Finance Industry?
OpenAI's ChatGPT chatbot uses a big language model. This programme understands and responds to human language after training on a vast text and code dataset.
ChatGPT is useful in customer service, content production, training, research, and development. Recently, it has spread to finance. This article discusses ChatGPT's impact on the financial sector and its potential.
Every financial institution needs good customer service. A great client experience is essential to keeping them happy and loyal. ChatGPT and other LLMs can assist financial companies improve customer service and support. Customers can receive 24/7 help, for instance. Organisations with global customers or numerous time zones need this support. For instance, ChatGPT can save money by eliminating human representatives. This is crucial for high-volume customer service companies.
AI and big data analytics are used to discover and analyse financial hazards in automated risk assessment. This helps financial organisations monitor risks faster and more accurately.
For example, ChatGPT can be used to automate risk assessment in sectors such as loan applications, insurance policies and investment portfolios. It can identify danger and anticipate outcomes by analysing massive data sets.
Automated risk assessment is substantially faster compared to activities conducted by a person. Thus, financial organisations can respond faster to threats and lower losses. This technique analyses massive volumes of data and automates operations to save time and money and remove human error.
Financial consultancy helps individuals and organisations achieve financial goals. Helps with investing, retirement, debt, and risk management.
ChatGPT provides financial consultancy by analysing market data and trends. Investors may be informed of risks and opportunities.
A recent study found that those who use artificial intelligence tools to boost productivity or efficiency earn $8.50 (21%) more per hour.
Goldman Sachs now offers ChatGPT-based personalised investing advice. The AI winners category saw a 75% gain in market value in 2023. Private AI investments are expected to expand in the next 2-3 years, according to Goldman Sachs.
Market research, analysis
Financial markets are complex and ever-changing. For informed judgements, investors and analysts require current and reliable market data. Large language models like ChatGPT can collect/analyze financial market data quickly, accurately, efficiently, and deeply. Investors and analysts may benefit greatly.
ChatGPT has drawbacks in market research and analysis. First, ChatGPT may access sensitive financial market data. Data security and privacy must be protected strongly. Second, ChatGPT must learn financial market language before commencing.
Given its pros and cons, ChatGPT can benefit many analysts and investors. Future advancements can make the financial system more efficient, accessible, and inclusive. How this technology is used in the future will be intriguing.